Polygon MATIC token symbol cryptocurrency theme on purple polygonal background. Cryptocurrency coin logo icon. Vector illustration.
The Polygon price bullish rally stalled on Tuesday. The MATIC price is trading at $1.60, which is about160% above the lowest level on July 20th. The coin has a market capitalization of more than $10.4 billion and is the 17th largest coin in the world. It has been overtaken by coins like Terra and Solana.
Ethereum is the biggest DAPP development in the world. Indeed, the total value locked of all Decentralized Finance (DeFi) projects built using the ecosystem has jumped to more than $80 billion.
However, Ethereum is known for its inefficiency. For one, it is a proof-of-work cryptocurrency that generates a lot of energy when being developed. This is being addressed by the ongoing transition to a proof-of-stake consensus technique. Ether is also known for its low speed and higher costs.
Therefore, Polygon developers sought to help solve these problems by creating a layer 2 program that can help scale apps built using Ethereum in one click. The network is faster than Ethereum, is highly scalable, and is sovereign. It also has advanced interoperability features.
As a result, many Ethereum developers have started transitioning their apps to Ethereum’s network. Some of these developers are Aave and Curve Finance. Others, like Synthetix, are moving to other layer 2 platforms. Therefore, there is a likelihood that demand for MATIC will keep rising as Ethereum’s network expands.
The daily chart shows that the MATIC price has staged a strong recovery recently. Along the way, it has managed to move above the 25-day and 50-day moving averages while the overall volume remains steady. Another key fact is that the current price is along the highest level on July 15th while oscillators are in an upward trend.
Therefore, the Polygon price will likely maintain a bullish trend as bulls target the next key resistance at $2.43, which was the highest level on May 26. This price is about 54% above the current level. On the flip side, a drop below $1.5 will invalidate this view.